EITC Announced Royalty Rates to Remain Unchanged for 5 Years

EITC Announced Royalty Rates to Remain Unchanged for 5 Years

Emirates Integrated Telecommunications Company (EITC) revealed that Ministry of Finance has announced the Federal Royalty Scheme. This scheme will be applied annually on ETC for the period of 5 years ie; 2017 to 2021. The telecom company has basically two telecommunications brands under its umbrella. EITC Announced Royalty Rates to Remain Unchanged for 5 Years.

EITC Announced Royalty Rates to Remain Unchanged for 5 Years

The first one was launched which in 2007 and serves 9 million active subscribers and over 100,000 businesses throughout the UAE; and the recently launched Virgin Mobile. The royalty rates will remain unchanged from their current levels for the next five years and will be applied to EITC’s regulated revenue and profits. The rolyalty rate on revenue for the five-year period will be 15 per cent and royalty on profit will be 30 per cent.

The fee approved by federal government will only by applied to licensed services from TRA. The fee set by the Federal Government applies only to licensed services from the Telecommunications Regulatory Authority (TRA). Total revenues from bundled offerings, incorporating both licensed and non-licensed services, shall be subject to the same royalty rates, the company said.
EITC was founded in 2006 as the UAE’s second licensed telecommunications provider. It is 39.5 percent owned by Emirates Investment Authority, 19.75 percent by Mubadala Development Company, 19.5 percent by Emirates Communications and Technology and the remaining by public shareholders. It is listed on the Dubai Financial Market (DFM).

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